E$9\mathrm{.}16(L{O}_4)($FV$-$OCI Investment Entries and Financial Statement

Presentation$)$ At December $31,2023,$ the equity investments of Wang Inc. ${}^{\text{'}}$

were accounted for using the FV$-$OCI model without recycling were as follow

Because of a change in relationship with Ahn, Wang sold its investment in Ahn for

$$153,300$ on January $20,2024.$ No other investments were acquired or sold during

$2024$; however, a dividend of $$1,3$ oo was received from Burnham in June. At

December $31,2024,$ the fair values of Burnham and Chi shares were $$153,750$ and

$$72,600,$ respectively.

Instructions

a$.$ Prepare the entry to adjust the portfolio of investments to fair value at December

$31,2023.$

b$.$ Prepare the presentation of all investment$-$related accounts on the statement of

financial position at December $31,2023.$ Assume AOCI at December $31,2022,$ is

nil.

c$.$ Indicate what accounts and amounts would be reported on the statement of

comprehensive income for the year ended December $31,2023,$ and where each

would be reported.

d$.$ Prepare the journal entries for the $2024$ sale of the investment in Ahn, including

reclassifying holding gains or losses to retained earnings and for the dividend

received from Burnham.

e$.$ Prepare the journal entry required at December $31,2024,$ to adjust the

investments to fair value.